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Oil production cuts are on the table. Here’s what that might mean for Alberta





Premier Rachel Notley says the plunging price of oil has become a crisis for Alberta, and she’ll announce a short-term solution on Sunday evening.

CBC political analyst Graham Thomson said he’s under the impression Notley will impose mandatory cuts to oil production.

“If she wasn’t going to do anything, she wouldn’t be going to this great length to try and soften us up beforehand,” he said, highlighting a letter Notley wrote about the struggling industry.

“She’s trying to show Albertans that she is doing all she can to … raise the price of oil.”

Notley said 35 million barrels of oil are sitting in storage, unable to make it to market because pipelines are congested. Oil is being sold at “fire-sale prices, around $10 a barrel” to get it moving.

This isn’t just the NDP being the nanny state and imposing its will on the free market.– Graham Thomson, political analyst

There are two short-term solutions for reducing the stockpile and closing the price gap, Notley said: Let the free market “sort itself out” or temporarily restrict oil production.

Both the United Conservative Party and Alberta Party are in favour of curtailing production.

“This isn’t just the NDP being the nanny state and imposing its will on the free market. This is the NDP backed by other parties, notably the United Conservative Party,” Thomson said.

“If this doesn’t work out as planned, they’re all going to share in the blame. But if it does work out as planned, they’ll all be trying to claim the credit for this.”

Pipelines: the problem and solution

The Federal Court quashed cabinet approval of the Trans Mountain expansion project this summer. (Dennis Owen/Reuters)

Notley is expected to announce whether the province will intervene or let the free market handle the differential on Sunday at 6 p.m. MT. 

Barbara Engelbart McKenzie, executive director of the Leduc-Nisku Economic Development Association, said a production cut isn’t ideal.

“Making a cut doesn’t promote capital investment. It’s not going to promote growth in the sector. It’s not going to get new projects started,” she said. “It’s just going to … deal with what we’re facing today, which is the large differential.”

The best-case scenario would be getting more pipelines built — a solution that requires federal backing, she said.

In her letter, Notley said the province will keep fighting for pipelines, which are the long-term fix for increasing the price of oil.

University of Calgary economics professor Trevor Tombe said congested pipelines are the root of the problem, noting more expensive transportation methods like railcars are used when pipelines are at capacity.

“It’s that added transportation cost that’s really behind the widening differential that we’ve seen recently,” he said.

Possible downsides

Notley noted there isn’t an industry consensus on whether a production cut is the right move.

It could help some producers by increasing prices, said Richard Dixon, a professor with Athabasca University’s faculty of business. But he noted it could also hurt refineries who benefit from lower prices, as well as smaller producers not anticipating a cut.

“For Suncor and other companies that have refineries that have the front end and capacity, Shell and others, this is going to hurt. Because right now, they’re able to turn a very good profit,” Dixon said.

“So who are we helping and who are we hurting? The premier alludes to that, [but] it needs to be a lot deeper.”

Tombe noted the effects of potentially curtailing production will depend on the details anticipated to be announced on Sunday.

CBC will livestream Notley’s announcement on Facebook and online on Sunday at 6 p.m. MT.


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Real Estate

Couple from Toronto buys dream home in Mushaboom





MUSHABOOM – A couple who lived and raised a family in downtown Toronto developed a five-year plan in 2015 to purchase their dream home.

In September they moved into the home – located on Malagash Island in Mushaboom on Nova Scotia’s stunning Eastern Shore – that met and exceeded their best dreams for their retirement.

The Camerons, Bruce and Tanya, decided in 2019 they would explore the Maritimes to see what real estate was available to become their potential retirement home. In the spring of 2020, during a global pandemic, the real estate boom hit their city, and they were hearing the same for Nova Scotia. Our province was their first-choice for attaining their desire for an entirely different lifestyle – away from the busyness of the city.

“We had $300,000 to $350,000 as a home value in mind to buy. Our semi-detached located off Danforth in Toronto was priced at $850,000. We wanted to come out ahead, so we would be secure in retirement,” Tanya said.

Their century-old home had prime location near the subway and GO Transit Line for a great 13-minute commute downtown.

“We enjoyed our community,” explains Bruce “… we had great neighbours, young children around and street parties – lots of social activity.”

Bruce says, “Our agent suggested a starting quote of $899,000. We did not do any renovations and only some staging. Fifty couples went through and we received four significant offers. Six days later we sold – with zero conditions – and a price of over a million dollars. We just requested a closing of September 2020 to get the kids off to school – which we got.”

The couple got more than they had anticipated.

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Real Estate

Rabobank Announces Leadership Changes in U.S., Canadian Offices





NEW YORK, Dec. 16, 2020 /PRNewswire/ — Rabobank, the leading global food and agribusiness bank, has appointed two of its top executives, Tamira Treffers-Herrera and Robert Sinescu, to become Co-Heads of North American Client Coverage, positioning the Bank for future growth in the region.

Treffers-Herrera has also assumed the role of Vice Chairperson and Head of the Atlanta office, where she additionally oversees Rabobank Mexico, which is led by Eduardo Palacios. Sinescu is the Head of the Chicago office, and also oversees Rabobank Canada, led by Marc Drouin, who was recently appointed as Canada’s General Manager.

Treffers-Herrera and Sinescu report to David Bassett, Head of Wholesale Banking North America, the Bank’s corporate and investment banking business for the region based in New York.

“Both Tamira and Robert have a demonstrated history of strong leadership, operational excellence and passion for our clients,” Bassett said. “Their broad experience and deep sector expertise will be invaluable in delivering dynamic results for clients while accelerating our growth trajectory in North America.”

Each office will have an even greater focus on key Food & Agribusiness sectors and clients: The Chicago office will drive growth in sectors including Dairy, Farm Inputs and Grains & Oilseeds, which are also key areas of focus for the Canada office. The Atlanta office will focus heavily on sectors such as Animal Protein, Beverages, Sugar, and Supply Chains, which are important sectors in Mexico as well.

“Rabobank is fully committed to our clients throughout North America, and we believe our new sector-focused coverage will improve our ability to provide knowledge-based, value-added solutions that benefit our clients,” Bassett said.

Treffers-Herrera was most recently based in London as CEO of Rabobank’s European Region from 2016-2020, where she took the organization through Brexit. Prior to that, she worked in the Atlanta office from 2002-2016. During her tenure in Atlanta, Treffers-Herrera served as Global Sector Head – Consumer Food & Beverages, and prior to that she was a senior banker for a portfolio of large beverage and consumer foods clients. She holds a Bachelor of Arts degree from the University of Kentucky, a Master of Arts from the Patterson School of Diplomacy and International Commerce and has studied at The University of Chicago Booth School of Business and Harvard Business School.

Sinescu has been with Rabobank for over 21 years and was previously General Manager of Rabobank Canada, where he oversaw all operations, business development, commercial strategy and relationships with regulators. In addition, he continues to serve as CEO of Rabo Securities Canada Inc. Prior to Canada, he was a senior banker, Head of Corporate Banking, European Sector Head for Sugar, and a member of the Management Team for Rabobank France. He holds a Bachelor of Science in Business from the Bucharest School of Business, a Master of Business Administration & Management and a Master of Science in Banking and Corporate Finance from Sorbonne University in Paris, and has studied at Brown University.

Drouin has worked with Rabobank’s Canadian team for more than nine years and most recently served as a senior banker, Head of Rabobank Canada’s AgVendor Program and a member of Rabobank Canada’s Management Team. He brings extensive wholesale banking experience within the Dairy, G&O, CPG and Supply Chain sectors. Drouin holds a Bachelor of Arts degree from McGill University and a Master of Business Administration in International Finance, Marketing and Management from the Schulich School of Business at York University.

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Greybrook Realty Partners & Marlin Spring Brand Jointly Owned Asset Manager – Greyspring Apartments





TORONTO, Dec. 14, 2020 (GLOBE NEWSWIRE) — Greybrook Realty Partners and Marlin Spring are pleased to announce the new branding of their jointly owned investment and asset management firm, Greyspring Apartments. With a portfolio of more than 2,000 units and CAD$375 million in assets under management, Greyspring Apartments is focused on the acquisition and repositioning of multi-family assets throughout Canada.

The new name and branding is an important step in Greyspring’s evolution as an independent operating business. Formed in 2018 by long standing-partners Marlin Spring and Greybrook Realty Partners, Greyspring Apartments was established with the goal of building a leading asset management firm with a robust portfolio of residential rental real estate assets in primary and secondary markets across Canada.

Greyspring’s talented team of real estate, asset management and finance professionals is overseen and guided by the Management Board, whose members include Benjamin Bakst, CEO, Marlin Spring; Elliot Kazarnovksy, CFO, Marlin Spring; Sasha Cucuz, CEO, Greybrook Securities Inc.; Peter Politis, CEO, Greybrook Realty Partners; Chris Salapoutis, President & COO, Greybrook Realty Partners; Ashi Mathur, President, Marlin Spring; and Karl Brady. In addition to his role on the Management Board, Karl Brady leads Greyspring Apartments as its President. 

“We are pleased to announce the official name and branding of a business we formed with our partners at Marlin Spring a few years ago,” said Peter Politis, CEO, Greybrook Realty Partners. “Greyspring has been diligently focused on the execution of strategic value-add programs across its portfolio that are improving the quality of housing for tenants and overall asset values. For Greybrook investors, expanding from our core business in real estate development to the value-add space through Greyspring, has allowed us to provide our clients with investment opportunities that diversify their real estate investment portfolios.”

“Marlin Spring and Greybrook have partnered on many residential real estate projects in recent years,” said Benjamin Bakst, CEO and Cofounder, Marlin Spring. “To a great extent, Greyspring illustrates our approach to partnerships. We believe in, and strive for, responsible growth through deepening our relationships with our trusted partners. With Greyspring, we’ve formalized our focus on providing better and more affordable living experiences for Canadians. This vision aligns with our mission to deliver exceptional real estate value to all our stakeholders with an uncompromising adherence to our core values.”

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